1【Financial Statement】(1) Balance Sheet（Unit：thousand yen）
1st Period（September 30, 2017）
AssetsCurrent Assets
Cash and bank deposit
Prepaid expenses
Other current assets
Total current assets
Fixed Assets
Property and equipment
Construction in progress
Total property and equipment
Investments and other assets
Guarantee deposits
Total investment and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Accounts payable
Income taxes payable
Total current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ Capital
Surplus
Unappropriated retained earnings (Accumulated deficit)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets-

1

89,637717
6490,419756
756
10,00010,00010,756
101,175

480
96
577
577

150,000(49,402)
ሺ49,402)100,597*1 100,597
101,175-

(2)【Statement of Income】(Unit: thousand yen)
1st period(from May 18, 2017
to September 30, 2017)
Operating revenues
Rental revenues
Operating expenses
Administrative service fees
Tax and dues
Other operating expenses
Total operating expenses
Operating loss
Non-operating incomesInterest income
Total non-operating income
Non-operating expenses
Organization expenses
Investment unit issuance expenses
Total non-operating expenses
Ordinary loss
Loss before income taxes
Income taxes -current
Total income taxes
Net loss
Unappropriated retained earnings (Accumulated deficit)

475
3,692
1,138
5,305
(5,305)0040,0004,000
44,000(49,305)(49,305)
96
96(49,402)(49,402)-2-

(3)【Statements of Changes in Unitholders’ Equity】
1st Fiscal Period (From May 18, 2017 to September 30, 2017)(Unit: thousand yen)
Unitholders’ equity
Surplus
Unitholders’ capital
Capital surplus
or loss

Total surplus

Total unitholders’equityTotal net assets

150,000

150,000

Balance as of May 18, 2017
Changes of items during the period
Issuance of new investment unit

150,000

Net loss(49,402)(49,402)

ሺ49,402)(49,402)

Total changes of items during theperiod150,000(49,402)(49,402)100,597

100,597

Balance as of September 30, 2017

*1 150,000(49,402)(49,402)100,597

100,597-3-

(4)【Statements of Cash Distribution】
Fiscal Period under Review(From May 18, 2017 to September 30,
2017)
Unit: YenI

Unappropriated loss (-)(49,402,296)(-)(49,402,296)

II

Cash distributions(Cash distributions per unit)
III Loss carried forward to the next period (-)
Calculation method for cash distributions

In accordance with Articles 47, Paragraph
1 of Canadian Solar Infrastructure Fund,
Inc. (“ CSIF’) s Articles of Incorporation,
the amount of cash distributions shall be
the amount of profit in excess of anamount equivalent to 90% of distributableprofits, as stipulated in Article 67-15 of
the Act on Special Measures Concerning
Taxation. Based on this policy, CSIF will
not make distributions in the first fiscal
period because there is no amount of
profit. In addition, the unappropriatedloss will be carried forward to the next
period. CSIF does not distribute cash
distributions in excess of its earnings, as
stipulated in Article 47, Paragraph 2 of its
Articles of Incorporation.

-

4

-

(5)【 Statement of Cash Flow】(Unit: thousand yen)
1st period(from May 18, 2017
to September 30, 2017)
Cash flows from operating activities
Income before income taxes（-）
Investment unit issuance expenses
Organization expenses
Increase (Decrease) in accounts payable
Interest Income
Decrease (Increase) in prepaid expenses
Other, net
Sub-totalInterest received
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property and equipment
Payment for guarantee deposit
Payments for organization expenses
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Net cash provided by (used in ) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal period
Cash and cash equivalents at the end of the fiscal period－(49,305)
4,000
40,000
480
(0)
(717)
ሺ64)
(5,607)0
ሺ5,606)(756)
ሺ10,000)(40,000)
ሺ50,756)
150,000(4,000)146,000
89,637*1 89,637

5－

(6)【Notes to Financial Statements】[NOTES ON GOING CONCERN PREMISE]
Not applicable.

[SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES]

1. Scope of funds in statement of cash flows

Funds (cash and cash equivalents) in statement of cash flows
consist of cash on hand, demand deposits and short-term
investments with a maturity of three months or less at the date ofacquisition that can readily be converted into cash and that are
subject to insignificant risks of changes in value.

2. Other significant matters serving as the basis for

Consumption tax and local consumption tax are excluded frompreparation of financial statements

the corresponding transaction amounts.

[NOTES TO BALANCE SHEET]*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)

As of September 30, 2017
50,000[NOTES TO STATEMENT OF CHANGES IN NET ASSETS]*1 Total number of authorized investment units and the total number of investment units issued and outstanding
From May 18, 2017 to September 30, 2017
Total number of authorized investment units

10,000,000 units

Total number of investment units issued and outstanding

1,500 units[NOTES TO STATEMENT OF CASH FLOWS]*1 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance sheet(Unit: thousand yen)
From May 18, 2017 to September 30, 2017
Cash and deposits

89,637

Cash and cash equivalents

89,637[NOTES ON LEASE TRANSACTIONS]
Not applicable.

[NOTES ON FINANCIAL INSTRUMENTS]
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial institutions or issuing investment
units. The basic policy is to build stable and sound financial operations to maintain and increase earnings in the medium to longterm and grow the size and value of assets.

(2) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are no market prices, values are reasonably－

6－calculated. Since certain assumptions are used for the calculation of fair values, they may change if different assumptions areused.

2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of September 30, 2017, and the difference
between them. Financial instruments whose fair values are extremely difficult to estimate are not included in the table.

(Unit: thousand yen)Book value

Fair value

Difference(1) Cash and deposits

89,637

89,637-

Total assets

89,637

89,637-(2) Accounts payable

480

480

-

Total liabilities

480

480

-

(Note 1) Methods used for estimating the fair values of financial instruments
Assets(1) Cash and deposits. These financial instruments are settled in the short term, and their fair values are deemed to approximate
their book value. Therefore, the book values are used as the fair values.
Liabilities(2) Accounts payable. These financial instruments are settled in the short term, and their fair values are deemed to approximate
their book value. Therefore, the book values are used as the fair values.
(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (September 30, 2017)(Unit: thousand yen)

Longer thanLonger thanLonger thanLonger thanWithin one

one year,

two years,

three years,

four years,

Longer thanyear

within two

within three

within four

within five

five years

years

years

years

years

(1) Cash and deposits
Total

89,637

-

-

-

-

-

89,637

-

-

-

-

-

[NOTES ON SECURITIES]Current fiscal period (as of September 30, 2017)
Not applicable.

[NOTES ON DERIVATIVE TRANSACTIONS]
Current fiscal period (as of September 30, 2017)
Not applicable.

[NOTES ON RETIREMENT BENEFITS]
Current fiscal period (as of September 30, 2017)
Not applicable.

[NOTES ON TAX EFFECT ACCOUNTING]
Current fiscal period (as of September 30, 2017)
Not applicable.

[NOTES ON SHARE OF PROFIT (LOSS) OF ENTITIES ACCOUNTED FOR USING EQUITY METHOD, ETC.]
Current fiscal period (as of September 30, 2017)－7－Not applicable.

[NOTES ON RELATED PARTY TRANSACTIONS]
1.Major corporate unitholders
Current fiscal period (from May 18, 2017 to September 30, 2017)

Amount ofEndinginvestment

Business or Unitholding

Trans-

transactionsbalance(thousandoccupation ratio (owned) Interlocking Businessofficers
relationshipactions(thousandCapital or
Attributes

Name ofcompany

Addressyen)

RelationshipItem(thousand
yen)

yen)

Installation,
operation andmainte-50F Shinjuku

nanceMitsuiControlling
unitholder

Canadian

Building, 2-

Solar

1-1 Nishi

business of
100,000

Projects K.K. Shinjuku,

equipmentfor100.0%

None

Controlling Acceptanceunitholder of investment

150,000

Total amountof investment

150,000

photovoltaic

Shinjuku-ku,

power

Tokyo

generationand other
new energy

2.Affiliates
Current fiscal period (from May 18, 2017 to September 30, 2017)
Not applicable.

3.Fellow Subsidiaries
Current fiscal period (from May 18, 2017 to September 30, 2017)

Amount ofEndinginvestment

Business or Unitholding

Trans-

transactionsbalance(thousandoccupation ratio (owned) Interlocking Businessofficers
relationshipactions(thousandCapital or
Attributes

Name ofcompany

Addressyen)

RelationshipItem(thousand
yen)

yen)

33F Shinjuku

Subsidiary ofcontrolling
unitholder

Canadian
Solar AssetManagement K.K.

CenterInvestment

Building, 125-1 Nishi

150,000

Shinjuku,

management

There are-interlocking

business

officers

Shinjuku-ku,
Tokyo

4.Officers and major individual unitholders
Current fiscal period (from May 18, 2017 to September 30, 2017)
Not applicable.

[ NOTES ON ASSET RETIREMENT OBLIGATIONS]
Current fiscal period (from May 18, 2017 to September 30, 2017)
Not applicable.

[ NOTES ON INVESTMENT AND RENTAL PROPERTY]
Current fiscal period (as of September 30, 2017)－8－

Delegation of Payment of
asset

remune-manage-ration for

ment

organizer

40,000--Not applicable.

[NOTES ON SEGMENT INFORMATION]
1. Segment information
Since CSIF has a single segment of the rental business of infrastructure assets, the segment information is omitted.

2.Related Information
Current fiscal period (from May 18, 2017 to September 30, 2017)(1) Information on products and services
Information is omitted because operating revenue is not generated.

(2) Information on regions①

Operating revenue
Information is omitted because operating revenue is not generated.

②

Property, plant and equipment
Information is omitted because the Investment Corporation does not hold property, plant and equipment.

(3) Information on major customers
Information is omitted because operating revenue is not generated.

[NOTES ON PER UNIT INFORMATION]
Current fiscal period
From May 18, 2017
to September 30, 2017
Net assets per unit

67,065 yen

Net income (Net loss) per unit

(32,934) yen(Note 1) Net income (Net loss) per unit is calculated by dividing net income (net loss) by the average number of investment units during the period.
Diluted net income (net loss) per unit for the fiscal period ended September 30, 2017 is not presented because CSIF recorded a loss for the
fiscal period.
(Note 2) The basis of calculation of net loss per unit is as follows.

Current fiscal period
From May 18, 2017
to September 30, 2017
Net income (Net loss) (Thousand yen)

(49,402)

Amount not attributable to common unit holders-(Thousand yen)
Net income (Net loss) attributable to common unit

(49,402)

holders (Thousand yen)
Average number of investment units during the

1,500

period (Units)[NOTES ON SIGNIFICANT SUBSEQUENT EVENTS]
1. Issuance of new investment units
At a Board of Directors’ meeting held on October 20, 2017, CSIF resolved a resolution on the issuance of new
investment units as follows. Payment for the issuance of new investment units through public offering was completed
on October 27, 2018, and payment for the issuance of new investment units through third-party allotment wascompleted on November 28, 2017. As a result, as of November 28, 2017, the total amount of investment was
17,315,550,000 yen and the total number of units issued and outstanding was 182,190 units.
－9－(i) Issuance of new investment units through public offering (primary offering)- Number of investment units to be offered- Issue Price (Offer Price)

177,800 units

100,000 yen per unit

- Total Issue Price (Total Offer Price)

17,780,000,000 yen- Amount to be paid in (Issue amount)

95,000 yen per unit

- Total amount to be paid in (Total Issue amount)- Payment date
- Purpose of funding

16,891,000,000 yen

October 27, 2017
The funds from the primary offering were applied to partial fund for acquisitionsof specific assets.

(ii) Issuance of new investment units through third-party allotment- Number of investment units to be offered

2,890 units- Amount to be paid in (Issue amount)

95,000 yen per unit

- Total amount to be paid in (Total Issue amount)

274,550,000 yen- Allottee and number of investment units allotted- Payment date
- Purpose of funding

Mizuho Securities

2,890 units

November 28, 2017
The funds through third party allotment are the fund on hand by depositing
with financial institutions until payment and are scheduled to be allocated topart of the funds for future acquisitions or repayment of borrowings.

The change in the total number of investment units issued and outstanding as a result of the above issuance of new
investment units is as follows.
･Total number of investment units issued and outstanding as of September 30, 2017 1,500 units･ Increase in number of investment units as a result of issuance of new investment units through primary offering
177,800 units･ Increase in number of investment units as a result of issuance of new investment units through third-party
allotment 2,890 units･ Total number of investment units issued and outstanding after above issuance of investment units
182,190 units

－

10

－

2. Borrowings of the Funds
CSIF completed the borrowing of funds, as described below, on October 31, 2017. The borrowed funds were applied topartial fund for acquisition of the newly acquired assets described in “3. Acquisition of assets” below and expenses
related thereto (including consumption taxes).

BorrowingType

Lenders(Note 1)

Amount(millionInterest
Rate(Note 2)
(Note 3)yen)

Drawdown
Date

Repayment
Repayment Date Method(Note 6)(Note 7)

Security(Note 9)(Note 4)

Shinsei Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
CorporationLong

MUFG Bank, Ltd.

-term

Resona Bank, Limited.
ORIX Bank Corporation

Base rate
15,700plus 0.45%(Note 5)

The Hiroshima Bank, Ltd.

October

October 31,

31, 2017

2027

Unsecured,
Balloonunguaranteed(Note 8)The Nanto Bank,Ltd.
Oita Bank.co,.ltd
THE SHONAI BANK, LTD.
THE MIE BANK,LTD.
THE TOCHIGI BANK, LTD.
Shinsei Bank, Limited

The earlier dateMizuho Bank, Ltd.

of (i) June 30,

Long

Sumitomo Mitsui Banking

2019 or (ii) the-term

Corporation

2,040

Base rate

Octoberfirst interest

plus 0.20% 31, 2017

payment dateUnsecured,
Bulletunguaranteed

after theconsumption tax
refund date

(Note 1)Long-term refers to borrowings that have a period of over a year from the drawdown date to the repayment date.

(Note 2) Finance related costs paid to the lenders are not included.
(Note 3)

The applicable base rate for each interest calculation period (being 6 months, excluding the first and last interest period) for the
calculation of the interest payable on the interest payment date shall be the 6 month Japanese yen TIBOR (Tokyo Interbank
Offered Rate) announced by the General Incorporated Association JBA (Japanese Bankers Association) TIBOR Administrationon the 2nd business day prior to the Drawdown Date for the first interest calculation period and on the 2nd business day prior to
the beginning of each relevant interest calculation period thereafter. The applicable base rate shall be revised for each interest
period. However, if a corresponding base rate is not available for an interest calculation period, the base rate shall be calculatedusing the method agreed in the relevant loan agreement.

(Note 4)

The first interest payment date shall be due on December 29, 2017 and subsequent interest payment dates shall be due on thelast day of June and December every year (if an interest payment date is not a business day, then the payment shall be made on
the immediately succeeding business day; provided, however, that if such payment day falls into the following month, then thepayment shall be made on the immediately preceding business day) and the last repayment date.

(Note 5)The interest rate for the full amount of the Term Loan shall be effectively fixed at 0.845% with the execution of the interest rate
swap agreements.

(Note 6)

If the Repayment Date is not a business day, then the repayment shall be made on the immediately succeeding business day;provided, however, that if such repayment day falls into the following month, then the repayment shall be made on the immediately

－

11

－

preceding business day.
(Note 7)

CSIF can make an early repayment of all or part of our borrowings subject to certain conditions, such as prior written notice to(Note 8)CSIF intends to enter into balloon amortization loans, which has an initial principal repayment date of June 30, 2018, andthe relevant lenders.

subsequent principal repayment dates shall be the last day of June and December (if a principal repayment date is not a businessday, then the payment shall be made on the immediately succeeding business day; provided, however, that if such payment day
falls into the following month, then the payment shall be made on the immediately preceding business day) and the remaining
principal shall be repaid as a balloon payment on the repayment date.
(Note 9)The loan agreements contain restrictive financial covenants to be applied on each settlement date of CSIF, such as the total
amount of interest-bearing liabilities to the total asset value (LTV), debt-to equity ratio and debt service coverage ratios as
indicators to determine the ability of CSIF to repay the loan. Breaches of such covenants for 2 successive fiscal periods or an
occurrence of an acceleration event could result in being required to grant security interests in favor of the lenders.

3．Borrowing of funds
CSIF borrowed funds as described below on February 1, 2018.
The borrowing is used to fund part of the acquisition for newly acquired assets and various
expenses associated with them (including consumption tax and local consumption tax) specified in “4. Acquisition of assets” below.

Total
Type
(Note 1)

LenderBorrowingAmount(million yen)Interest Rate
(Note 2)Draw

(Note 3)down

(Note 4)

Date

Borrowing
MethodRepayment

Repayment

Security/

Date

MethodGuarantee(Note 6)(Note 7)(Note 9)(Note 5)
Borrowings
under theindividual
loan

SumitomoLong term

Mitsui
Banking

900

Base rate plus

February

0.45%

1, 2018

Corporationagreement

The 3rddated theanniversary

26th day ofdate of theJanuary,

drawdown

2018 with

date

Unsecured
Balloonand(Note 8)

unguaranteedthe lender
described
above in theleft column(Note 1)Long-term refers to borrowings that have a period of over a year from the drawdown date to the repayment date.

(Note 2)Finance related costs paid to the lenders are not included.

(Note 3)

The applicable base rate for each interest calculation period (being 6 months, excluding the first and last interest period) for the calculation of theinterest payable on the interest payment date shall be the 6 month Japanese yen TIBOR (Tokyo Interbank Offered Rate) announced by the General
Incorporated Association JBA (Japanese Bankers Association) TIBOR Administration on the 2nd business day prior to the Drawdown Date for the firstinterest calculation period and on the 2nd business day prior to the beginning of each relevant interest calculation period thereafter. The applicable baserate shall be revised for each interest period. However, if a corresponding base rate is not available for an interest calculation period, the base rate shallbe calculated using the method agreed in the relevant loan agreement. Fluctuations in JBA’s TIBOR can be checked at the General Incorporated
Association JBA TIBOR Administration’s website (http://www.jbatibor.or.jp/rate/).

(Note 4)

The first interest payment date shall be due on June 29, 2018 and subsequent interest payment dates shall be due on the last day of June and December
every year (if an interest payment date is not a business day, then the payment shall be made on the immediately succeeding business day; provided,
however, that if such payment day falls into the following month, then the payment shall be made on the immediately preceding business day) and thelast repayment date.

(Note 5)

The first interest calculation period shall be from February 1, 2018 to June 29, 2018.

－

12

－

(Note 6)

If the Repayment Date is not a business day, then the repayment shall be made on the immediately succeeding business day; provided, however, that
if such repayment day falls into the following month, then the repayment shall be made on the immediately preceding business day.

(Note 7) CSIF may repay all or part of the borrowings ahead of the designated repayment date upon satisfaction of certain conditions, such as a prior written
notice from the CSIF, during the period after the drawdown described above and before the repayment date.
(Note 8) CSIF intends to enter into balloon amortization loans, which has an initial principal repayment date of June 30, 2018, and subsequent principal repayment
dates shall be the last day of June and December (if a principal repayment date is not a business day, then the payment shall be made on the immediately
succeeding business day; provided, however, that if such payment day falls into the following month, then the payment shall be made on the immediately
preceding business day) and the remaining principal shall be repaid as a balloon payment on the repayment date.
(Note 9) The loan agreements contain restrictive financial covenants to be applied on each settlement date of CSIF, such as the total amount of interest-bearing
liabilities to the total asset value (LTV), debt-to equity ratio and debt service coverage ratios as indicators to determine the ability of CSIF to repay theloan. Breaches of such covenants for 2 successive fiscal periods or an occurrence of an acceleration event could result in being required to grantsecurity interests in favor of the lenders.

－

13

－

4. Acquisition of assets
CSIF completed the acquisition of assets, as described below, on October 31, 2017.

Asset
number(Note 1)

Project nameLocation(Note 2)

(Note 3)S-01

CS Shibushi-shi Power Plant

S-02

CS Isa-shi Power Plant

Acquisition Price(million yen)

Acquired from

(Note 4)

Shibushi-shi,

540

Tida Power 06 G.K.

Isa-shi, Kagoshima

372

Tida Power 05 G.K.

S-03

CS Kasama-shi Power Plant Kasama-shi, Ibaraki

907

Castilla Clean Energies Tsukuba K.K.

S-04

CS Isa-shi Dai-ni Power Plant Isa-shi, Kagoshima

778

Tida Power 10 G.K.

S-05

CS Yusui-cho Power Plant Aira-gun, Kagoshima

670

Tida Power 09 G.K.

Isa-shi, Kagoshima

949

Tida Power 02 G.K.

Kasama-shi, Ibaraki

850

Castilla Clean Energies Tsukuba2 K.K.

CS Hiji-machi Power Plant

Hayami-gun, Oita

1,029

Tida Power 25 G.K.

CS Ashikita-machi Power

Ashikita-gun,

Plant

Kumamoto

989

Tida Power 07 G.K.

1,733

Tida Power 01 G.K.

1,018

Univergy 06 G.K.

514

Clean Sangonera K.K.

20,084

Tida Power 22 G.K.

S-06

S-07
S-08
S-09

CS Isa-shi Dai-san Power
Plant
CS Kasama-shi Dai-ni Power
Plant

Kagoshima

CS Minamishimabara-shi
S-10

Power Plant (East)

Minamishimabara-

CS Minamishimabara-shi

shi, Nagasaki

Power Plant (West)
S-11
S-12
S-13

CS Minano-machi Power

Chichibu-gun,

Plant

Saitama

CS Kannami-cho Power Plant Tagata-gun, Shizuoka
CS Mashiki-machi Power

Kamimashiki-gun,

Plant

Kumamoto
Total(Note 1)30,438-Asset number is the number that we have assigned to our projects, based on the classification of the renewable energy project. The S denotes
a solar energy project. The same applies herein.

(Note 2)
(Note 3)“CS” is the abbreviation for Canadian Solar. The same applies herein.
Based on the location of the land or one of the lands upon which the solar energy facility is installed, as described in the property registry.
In either case, the address is described up to the city or district.

(Note 4)

Acquisition price is as described in purchase agreements (excluding acquisition expenses such as the payment of outsourcing service fees
related to acquisition, property-related taxes, urban planning taxes, consumption taxes and other fees), rounded down to the nearest million
yen.

－

14

－

5. Acquisition of assets
CSIF acquired the assets mentioned below on February 1, 2018.

Asset

Project namenumber

S-14

Acquisition Price

Location(million yen)

(Note 1)

CS Koriyama-shi Power Plant(Note 2)

Koriyama-shi,
Fukushima

CS Tsuyama-shi Power

Tsuyama-shi,

Plant

OkayamaS-15

Acquired from

Total

246

CLEAN GUADALQUIVIR K.K.

746

Univergy 12 G.K.

992-

(Note 1) Based on the location of the land or one of the lands upon which the solar energy facility is installed, as described in the property registry.
In either case, the address is described up to the city or district.
(Note 2) Acquisition price is as described in purchase agreements (excluding acquisition expenses such as the payment of outsourcing service fees
related to acquisition, property-related taxes, urban planning taxes, consumption taxes and other fees), rounded down to the nearest millionyen.

（７）【Supplementary Schedules】① Schedule of securities
Not applicable.
② Table of the status of contract amounts, etc. and market prices of derivative transactions and forward exchangetransactions
Not applicable.
② Schedule of real property
Not applicable.
④ Schedule of other specific assets
Not applicable.
⑤ Schedule of investment corporation bonds
Not applicable.
⑥ Schedule of borrowings
Not applicable.

－

15－